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Tom [10]
3 years ago
8

An agency problem can occur when A. it is difficult or expensive for the owners to verify what the agent is actually doing. B. t

he owners and agents have different attitudes toward risk. C. the desires and objectives of the owners and agents conflict. D. executives do not select risky strategies because they fear losing their jobs if the strategy fails. E. all of the above.
Business
1 answer:
GaryK [48]3 years ago
4 0

Answer:

The answer is E.

Explanation:

In a public company, the directors are the agents of the company while the shareholders are the principals(owners) of the company. Because most times, shareholders doesn't have the needed skills and experience to run businesses, they employ director/management (agent) to run their businesses. Most times there is conflict of interest, for example, the managers might prefer a risky business while the shareholders might prefer less risky, this type of scenario creates agency problem.

Agency problem (principal-agent problem) is a conflict of interest that happens when the directors (agent) don't fully represent the best interest of the shareholders (principal)

So all the options in the question represents agency problem.

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Javier left his home country to become a gardener for a family in a suburb of San Francisco, California. One of the benefits of
mario62 [17]

Answer: socialist economic system

Explanation: In simple words, a socialist system refers to the system in which the forces of demand and supply are heavily controlled by the government. In such economies, the goods and services are produced with an objective of social welfare and not generation of profit like in capital economy.

In the given case, the home country of Javier provided the service of public transportation at lower prices unlike in California.

Hence from the above we can conclude that the correct answer is socialist economic system.

8 0
3 years ago
Assume cereal and milk are complements for most consumers. Use the slider to show what will happen to the demand for cereal if t
professor190 [17]
It will go up because the milk is cheaper and they will buy what goes with it because they are complements ( milk and cereal ) this leads people to buy what goes with it so more cereal will be bought
7 0
4 years ago
To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along th
solong [7]

The way that this policy is going to be known to affect the consumers budget line is that it would make the budget line flatter.

<h3>How does this policy affect the budget line?</h3>

First the formula for the intercept is given as

budget divided by the price of the good on their different axis.

The exemption of taxes is going to make the price of the good on x to fall. This would then raise the ability to afford it. The intercept then goes to the right. Hence it is flatter.

Read more on consumption models here:

brainly.com/question/15088059

#SPJ1

3 0
2 years ago
Which of the following is​ true? A. The elasticity of demand is constant along most demand curves. B. The elasticity of demand v
Mekhanik [1.2K]

Answer:C

Explanation:

The elasticity of demand varies among most demand curves due to price change

4 0
3 years ago
Read 2 more answers
This investment is best considered
VashaNatasha [74]

Answer:

there can be no answer without a proper question

6 0
3 years ago
Read 2 more answers
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